Sage 50 “941 Total is Incorrect on the Tax Liability Report”

The tax liability report is important and if that 941 total is incorrect then it can cause issues. So this blog is about to tell you its causes and solutions. Without wasting time let’s go through this blog and know about what is the 941 total is incorrect on the tax liability report.

Summary:

• 940 total is incorrect.
• 941 total is incorrect.
• Individual amounts do not add up to the total.
• The report totals do not add up properly when summarized
• On the report of tax liability, there are no totals.
• 401K amounts are missing from the 941 forms.
• I manually calculated the 941 totals using my own formulas, which resulted in inaccurate totals on my paper form.

Causes of Tax Liability Report 941 Total is Incorrect

• The date Range can be Incorrect.
• Incorrect Adjustments
• Voided Payroll Check
• Formulas for Sage-Maintained Payroll in User-Maintained
• Manually Entered Garnished Payroll Check
• Selecting the Year First then Form in the Payroll Tax Form Selector

Resolution of Sage 50 Tax Liability Report 941 Total is Incorrect

Section 1: Install the Latest Tax Update

The process for installing payroll tax forms, including the W2, 941, 940, and other state or federal tax forms.

• First, You have to go to aatrix.com/sage50.
• Then you have to click Download Update.
• Install using the peach.exe file, After downloading..
• Select yes to all if asked to overwrite existing files.
• To complete the installation you have to follow the instructions that are displayed on-screen.

Section 2: Check the Incorrect Date Range

• Tax Liability Report:
  • Choose Options in the Tax Liability Report’s top menu.
  • Add the date of the check or checks to the Dates section and then select OK.

• Form 941 or 940:
  • Choose the [Year] 940 Report or [Year] 941/Schedule B/941-V form from the list of available forms on the Payroll Tax Form Selector.
  • If necessary, then you have to choose the Frequency, Year, and Quarter in the field named select filing period.
  • Lastly, Choose OK.

Section 3: Delete the Voided Checks

• Before selecting Payroll you have to select Reports and Forms.
• Then you have to double-click on Payroll Check Register and then search for any voided checks.
• Now you have to double-click the Voided Check and then you have to click Delete.
• After that, you have to close the Payroll Entry screen.
• Find the original check with the identical check number-without the V-that you just voided.
• The Original Check should be double-clicked before being deleted.
• Repeat until there are no more voids, repeat steps 2 through 6.
• Make sure the sum on your Tax Liability Report is correct.

Section 4: Formulas for Sage-Maintained Payroll in User-Maintained

• Click User-Maintained after choosing File, Payroll Formulas.
• Delete any FIT, FICA, and Medicare tax calculations from the current year.
• Make sure the sum on your Tax Liability Report is accurate.

Section 5: Under Employee Defaults, the Adjusted Gross values for Social Security and Medicare are different

• Click Options in the Tax Liability Report.
• Select the Summarized Report checkbox and then you have to click OK.
• List the employees whose Social Security/Medicare tax subtotals (FICA EE, Medicare EE) do not match the subtotal for their employer (FICA ER, Medicare ER).
• Select Employees, then Maintain, Default Information, and finally the Employee Fields tab.
• Make sure that the appropriate payroll fields are checked to calculate the adjusted gross before selecting Adjust on the Tax tab shown above.
• Select the Company Fields tab after choosing Maintain, Default information, and Employees.
• Verify that the correct payroll columns are being selected to calculate adjusted gross by selecting Adjust on the Tax tab found above.
• Run the Tax Liability Report again to ensure that it now calculates the updated adjusted gross settings.

Section 6: For one or more Employees Federal Income Tax Formula is Missing

• First, you have to select Maintain and then you have to click Employees/Sales Reps.
• Choose the first employee from the drop-down menu in the Employee ID field.
• The Employee Fields tab should be chosen.
• Check that the Calculated Box is ticked and that the Formula is FIT in the Federal Income Tax column.
• To move to the next employee record and repeat step 4 until all employees have been validated, then select the right-pointing record selection arrow to the right of the Employee ID field. See Article ID 12842 if you need to verify the employment of a big number of people. For a quicker technique, see Related Resources for how to quickly identify which employee has Use Defaults disabled.
• The FIT formula ought to be reestablished if the FIT formula is absent from an employee record (even if that employee is exempt from Federal withholding). Either check the Calculated box for the Federal tax field, choose the FIT formula from the Formula field drop-down list, and then you have to choose Save, or check the Use Defaults box for the Federal tax field and select Save.
• Select the Withholding Info tab of the employee record, you have to change the number of Federal Allowances to 99, and then click Save if the employee is exempt from federal withholding.
• Run a test payroll calculation for those employees who had changes made to the federal field to ensure that the federal withholding is being calculated correctly.

Section 7: Manually Entered Garnished Payroll Checks

• You have to delete manually entered payroll checks.
• Then you have to select Maintain, Employees, Default Information, and then you have to select the Employee Fields tab.
• On the Taxes that need to calculate you have to select Adjust.
• Then check that the Garnishment is checked to Use.
• Again enter the checks.

Conclusion

Hopefully, After reading the above blog, your doubt that is related to the 941 total that is incorrect on the Tax Liability Report is solved out now. In case you still face any issues related to this then you can call the help desk team. The help desk team is available round the clock for their users.

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